JPMorgan Cazenove (JPM) is the latest broker to sing the praises of Glencore PLC (LSE:GLEN) raising its end-2023 price target to 640p from 590p.
On Tuesday, Barclays set a 700p price target and painted a scenario where shares in the company could double from current levels.
JPM is also positive after taking a fresh look at the diversified natural resource company following the EU support package for the energy market unveiled earlier this month.
It concluded that at the group’s current US$75bn market capitalisation the market ascribes a value to Glencore’s coal business of US$15bn-US$20bn compared to JPM’s US$28bn fair value estimate.
JPM added Glencore's market cap also discounts coal prices under $100/tonne against the spot price of over $400/tonne but the broker expects market tightness and high prices to persist which has driven the increase in price target to 640p.
JPM reiterated its 'overweight' rating.